Online fashion retailer Namshi is eyeing expansion in Egypt next year to reach young, tech-savvy shoppers in the Arab world's most populous country as the economy shows signs of recovery.
Namshi, which is majority owned by Dubai's Emaar Malls, is considering setting up operations in the African nation to cater to an under-served market, Hosam Arab, chief executive of Namshi, told reporters in Dubai on Monday. Plans are still in early stages but would require opening local warehouses to avoid cross-border logistical challenges.
"It's a market where we believe demand exists and the customer is under-served," Mr Arab said. "It's the young, lifestyle customer that's looking for affordable fashion, branded fashion and follows social media personalities."
Egypt's e-commerce market is set to grow 33 per cent to $3 billion (Dh11bn) by 2022 from $0.7bn in 2017, according to a study commissioned by Google and conducted by Bain & Co. released on Monday. Rising internet use and a wider selection of products from new and existing regional players will help drive market growth, the report said. Methods of paying online and delivery logistics are also improving. The GCC and Egypt account for 80 per cent of the e-commerce market in the Mena region.
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Namshi is also interested in more markets in North Africa but needs further more clarity on consumer spending habits, disposable incomes and stability in those economies.
"North Africa would probably be secondary after Egypt," he said. "We need to get more comfortable with those elements before those markets become attractive."
The potential expansion into the North African country comes as Saudi Arabia, the biggest e-commerce market in the region, becomes a "highly hyper-competitive" market, Mr Arab said.
Entering the Egyptian market comes with the challenges of understanding consumer spending habits and the brands that would sell well.
"It's still a potentially quite a challenging market with a lot of questions unanswered, but we do see the opportunity in that the consumer is under-served similar to the UAE market in past," he said, saying the size of investment is yet undetermined.
Namshi, in which Emaar Malls bought a 51 per cent stake last year, is also open to the idea of taking the company public under the right circumstances, according to Mr Arab.
"It's not off the table," he said. "If the timing is right, if we see that the market is right for it and we're ready for it, then absolutely there's no reason why we wouldn't."
Mr Arab declined to provide a forecast for Namshi's earnings in 2018 but said its business in the UAE has been growing at "very healthy" figures, though value-added tax introduced earlier this year has cut revenues by five per cent.
Kill
Director: Nikhil Nagesh Bhat
Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal
Rating: 4.5/5
HUNGARIAN GRAND PRIX RESULT
1. Sebastian Vettel, Ferrari 1:39:46.713
2. Kimi Raikkonen, Ferrari +00:00.908
3. Valtteri Bottas, Mercedes-GP 00:12.462
4. Lewis Hamilton, Mercedes-GP 00:12.885
5. Max Verstappen, Red Bull Racing 00:13.276
6. Fernando Alonso, McLaren 01:11.223
7. Carlos Sainz Jr, Toro Rosso 1 lap
8. Sergio Perez, Force India 1 lap
9. Esteban Ocon, Force India 1 lap
10. Stoffel Vandoorne, McLaren 1 lap
11. Daniil Kvyat, Toro Rosso 1 lap
12. Jolyon Palmer, Renault 1 lap
13. Kevin Magnussen, Haas 1 lap
14. Lance Stroll, Williams 1 lap
15. Pascal Wehrlein, Sauber 2 laps
16. Marcus Ericsson, Sauber 2 laps
17r. Nico Huelkenberg, Renault 3 laps
r. Paul Di Resta, Williams 10 laps
r. Romain Grosjean, Haas 50 laps
r. Daniel Ricciardo, Red Bull Racing 70 laps
Race results:
1. Thani Al Qemzi (UAE) Team Abu Dhabi: 46.44 min
2. Peter Morin (FRA) CTIC F1 Shenzhen China Team: +0.91sec
3. Sami Selio (FIN) Mad-Croc Baba Racing Team: +31.43sec
Stan Lee
Director: David Gelb
Rating: 3/5
UFC FIGHT NIGHT: SAUDI ARABIA RESULTS
Main card
Middleweight:
Robert Whittaker defeated Ikram Aliskerov via knockout (Round 1)
Heavyweight:
Alexander Volkov def Sergei Pavlovich via unanimous decision
Middleweight:
Kelvin Gastelum def Daniel Rodriguez via unanimous decision
Middleweight:
Shara Magomedov def Antonio Trocoli via knockout (Round 3)
Light heavyweight:
Volkan Oezdemir def Johnny Walker via knockout (Round 1)
Preliminary Card
Lightweight:
Nasrat Haqparast def Jared Gordon via split decision
Featherweight:
Felipe Lima def Muhammad Naimov via submission (Round 3)
Welterweight:
Rinat Fakhretdinov defeats Nicolas Dalby via split decision
Bantamweight:
Muin Gafurov def Kang Kyung-ho via unanimous decision
Light heavyweight:
Magomed Gadzhiyasulov def Brendson Ribeiro via majority decision
Bantamweight:
Chang Ho Lee def Xiao Long via split decision
Match info
Uefa Champions League Group H
Juventus v Valencia, Tuesday, midnight (UAE)
The specs
Engine: Dual synchronous electric motors
Power: 660hp
Torque: 1,100Nm
Transmission: Single-speed automatic
Touring range: 488km-560km
Price: From Dh850,000 (estimate)
On sale: October
TWISTERS
Director:+Lee+Isaac+Chung
Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos
Rating:+2.5/5
OPTA'S PREDICTED TABLE
1. Liverpool 101 points
2. Manchester City 80
3. Leicester 67
4. Chelsea 63
5. Manchester United 61
6. Tottenham 58
7. Wolves 56
8. Arsenal 56
9. Sheffield United 55
10. Everton 50
11. Burnley 49
12. Crystal Palace 49
13. Newcastle 46
14. Southampton 44
15. West Ham 39
16. Brighton 37
17. Watford 36
18. Bournemouth 36
19. Aston Villa 32
20. Norwich City 29
MATCH INFO
Borussia Dortmund 0
Bayern Munich 1 (Kimmich 43')
Man of the match: Joshua Kimmich (Bayern Munich)
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Company profile
Company name: Leap
Started: March 2021
Founders: Ziad Toqan and Jamil Khammu
Based: Dubai
Sector: FinTech
Investment stage: Pre-seed
Funds raised: Undisclosed
Current number of staff: Seven